CRM - October 2008 - (Page 21)

Insight you can quantify some of the advantages of addressing these problems, then the resistance melts away and you’ve got the wind at your back. [Also], get customer knowledge The the CMO—everybody sort of gravitates customer’s opinions become really inn the Civil War, our warring states took four years to unite as a cohe- toward it as a solution, but then you have fluential and help you make the case. CRM: With technology playing a bigsive nation, but it’s taking market- this remarkable statistic that the average ing departments decades to come CMO lasts under two years, whereas the ger role, how is that going to contribute to this effort? together—admittedly, with less brutal- average CEO lasts 56 months. Aaker: Teams and networks are There’s just no question that enority, but with no imminent end in sight. mous waste comes from among the most important tools a A winning strategy, howmisallocation of resources CMO can use If you can get people to ever, is hardly top secret. across silos, brands, mar- have relationship and communication In his latest book, Spanketing programs—and channels across silos, good things can ning Silos, David Aaker, that, by its very nature, happen. Virtual teams and networks vice chairman of the conhas to be dealt with from can operate across countries [and] ofsultancy Prophet, sympaan organizational per- fices. Teleconferencing has a modest thizes with marketers on spective. It has to be dealt impact [now]; most people use audio what he deems “the marwith in an objective, conferencing, but on the horizon, new keting problem of our analytical methodology technology is going to change that. time.” What worked a CRM: What are the cultural challenges because it’s so political— hundred years ago is no everybody’s so protective the CMO continues to face? longer suited for today’s Aaker: The motivation to change is of their budgets, of their industry standards. Business demands are calling for a company silos. One of my learnings was that lacking The process, the incentive, that has control of all its arms and legs. standardization and centralization may the people—they’re all oriented toward Assistant Editor Jessica Tsai spoke with be part of the solution, but that should the siloed objectives. You have to Aaker about the plague and the panacea: not be the end goal. Too many CMOs change the whole organization, and CRM magazine: How did silos come come in and move too quickly, and try that’s really hard. It’s hard for the CMO to establish authority over the silos. If to have adequate budget and authority, about in the first place? David Aaker: The people running there’s to be any improvement, it has and worst of all, there’s usually inadethe businesses are close to the product, to be faced with objective, analytical quate talent around to pull it off. So even if you know what to do to close to the marketing, fast have these resources to make it responses, little bureaucracy. “The motivation to change is lacking The process, the incentive, happen, it’s not at all automatic. So there’s good reason why CRM: How much time should these siloed organizations are the people—they’re all oriented toward the siloed objectives. CMOs be expected to effectively in place. They have a lot of You have to change the whole organization, and that’s really span silos? great attributes. hard It’s going to take some companies 15, 20 years.” Aaker: It’s going to take The problem is the world some companies 15, 20 years. It has changed and [silos] are no longer viable. You can’t exist with methodology that comes from some- has to be viewed in the long term. Some companies can do it in two to three them. The old media’s declined and in body with great credibility. CRM: How can the CMO begin build- years, but the stars have to be aligned its place are new media that don’t work well in a siloed context. You have these ing credibility without being threatening? for that to happen. Usually it should be Aaker: [Easy wins] are one way to considered a decade’s program. brands that span more products and CRM: Is it practical to expect compacountries, and brands are the basis of show some visible successes, but there business strategy so you can’t allow also needs to be a program to gain CEO nies to give CMOs that decade? Aaker: Organizationally, that’s the them to be diffused and run inconsis- support. You can start talking in the tently over silos. With more competi- CEO’s language—talk about “effi- reality. Along the way, you can make ciency” and “cost reduction,” rather enormous progress. tion, the inefficiencies just don’t work. CRM: How vital is the role of the chief than “marketing synergy.” A lot of the Check out our bonus selection of Required Reading— siloed problems, then, will become part marketing officer to an organization? Other Page-Turners—online at www.destinationCRM.com. Aaker: There’s this phenomenon of of the CEO agenda. Another way is if REQUIRED READING United We Stand I www.destinationCRM.com CUSTOMER RELATIONSHIP MANAGEMENT | OCTOBER 2008 21 http://www.destinationCRM.com http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - October 2008

CRM - October 2008 Contents Front Office Feedback Reality�Check Customer Centricity The Tipping Point Sprinting Toward Disaster? SAP�Retains Market-Share Lead in�CRM A�Week of Strong Customer�Service CRM�on Twitter Build a Good Event and They Will Come Required Reading There's No Place Like Home The New Breed of CRM�Consultant The Price is Right...You Hope How Much Marketing is Too�Much? The�Sweet Smell of High-Quality�Service The Next Act! For An Acquisition Some Stories Never Get Old CRM�Eases the Pressure For WIKA�Instruments Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - October 2008

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